The Southern India Mills Association (SIMA) has appealed to the union government not to levy import duty on cotton during the next cotton season, which starts in October.

This, says SIMA, will enable the industry to achieve its potential growth rate and sustain its financial viability apart from protecting the jobs of over 35 million people employed in the cotton textile value chain.Cotton prices even during the beginning of the cotton season (October 2022 to September 2023) when arrivals will be high are anticipated to be more than the minimum support price.

Hence, duty free imports would not affect farmers. If needed, the government can consider levying the duty only during the peak arrivals of the season (December to March) to avoid recurrence of a crisis during the end of the cotton season 2022-2023.

Following the removal of the import duty on cotton in April and the changes brought about in MCX cotton trading, domestic prices have softened. MCX cotton prices have reduced over 25 per cent in the last one week. Domestic cotton arrivals have started early and the cotton prices have reduced. However, Indian cotton prices are still higher by 15 per cent to 20 per cent compared to international prices, especially with countries such as Pakistan and China.